MANHASSET, N.Y. While major Japanese suppliers continued to dominate the market for consumer-electronics semiconductors in 2004, competitors from Korea and Taiwan have begun to make inroads, according to an iSuppli Corp. report.
Shipment revenue for consumer electronics products increased to $248.3 billion in 2004, up 8.1 percent from $229.7 billion in 2003, according to iSuppli. This helped drive sales of consumer-electronics up 29 percent, from $35.6 billion in 2003 to $45.95 billion in 2004, the firm said.
Toshiba Corp., Sony Corp. and Matsushita Electric Industrial Co. Ltd. remained the top-three suppliers of consumer-electronics semiconductors in 2004, with market shares of 12.2, 8.8 and 5.8 percent respectively. All three companies posted double-digit percentage gains in revenue for the year.
In addition, iSuppli noted Renesas Technology Corp., formed from the merger of the semiconductor operations of Hitachi and Mitsubishi, came in fourth, capturing 5.2 percent of sales.
Leapfrogging into fifth place was Samsung Electronics Co. Ltd. (Seoul, South Korea), whose sales increased 71.4 percent to $1.96 billion. The company, ranked tenth in 2003, surpassed Sanyo, Rohm, Philips, NEC and STMicroelectronics, by benefitting from strong sales of LCD driver chips, CMOS image sensors, and video enhancement chips.
Another trend, according to iSuppli, was the entry of Taiwanese Original Design Manufacturers (ODMs) into the market. Because the ODMs have formed their own supply chains, several Taiwan-based semiconductor vendors saw sales rise.
For instance, Taiwan-based MediaTek Inc. displaced Japan's Matsushita as the industry's leading supplier of DVD player ICs, iSuppli estimates.
Another offshoot of the Taiwan ODM trend was U.S.-based OmniVision moving from ninth to sixth place among suppliers of digital still camera semiconductors, said iSuppli. The company supplies CMOS sensors used to capture camera images in digital still cameras.
Japanese digital still camera makers typically use charge-coupled device (CCD) sensors, produced by Sharp, Sanyo, Matsushita, NEC, Toshiba and Sony.